Equirus downgraded Tata-Group’s Trent Ltd. to Reduce as it expects that the premium will decline on slowing growth. The target price is Rs 4,474 apiece, which implied 5% downside from Monday’s close.
Trent delivered exceptional topline compounding of 39% and 28% over the last five and 10 years, respectively. The street rewarded the hyper growth handsomely, which is reflecting in Trent’s valuation profile. Its five-year average one-year forward P/E multiple hovering around 95x times, Equirus said.
The inflection point for Trent’s growth was the launch of Zudio, the brokerage said. Zudio’s stellar run culminated in crossing the billion dollar mark in financial year 2025.
However, the growth run is appearing to be fizzling out. The second quarter of the financial year 2026 is poised to be the fifth consecutive quarter of sequential moderation in Trent’s topline growth.
